Advantage Marketing Systems, Inc.

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Advantage Marketing Systems, Inc. Advantage Marketing Systems, Inc. markets a product line consisting of approximately 103 products in three categories; weight management, dietary supplement and personal care products through a network marketing organization in which independent distributors purchase products for resale to retail customers as well as for their own personal use. AMS follows growth strategy through acquiring other companies with compatible product line. The principle objective of the company’s acquisition strategy is to acquire other network marketing organizations that can be combined with the company’s net work marketing organization, resulting in increased sales volume with minimal additional administrative costs. We recommend the company to follow its acquisition strategy in order to increase its sales. We also recommend the company to putt more effort in promoting its product line in order to decrease the risk of dependence on AM-300. We also believe that the creation of a research department is a necessity for the company in order to expand its product line and follow consumers preferences changes. Introduction The company history Advantage Marketing Systems, Inc. was founded in 1988 by C.E.O. John Hail after his company T.V.C Marketing completed a five year marketing contract with Pre-Paid. AMS markets a product line consisting of approximately 100 products in three categories: · Weight management (8). · Dietary supplement (28). · Personal care products (63). These products are marketed through a network marketing organization where independent distributors purchase products for resale not only for their own personal use, but also retail customers. Based in Oklahoma ... ... middle of paper ... ... and products. This will allow the company to increase its product line in order to respond to the change in consumer preferences, and also gain the right of patent. Projected growth Based on the implementation of these recommendations, AMS should see its sales grow to reach $100 Million in 2002. Costs will initially increase due to the added research, development, and promotions efforts associated with the new Strategy. The acquisition of Universal Nutrition Corporation will help the company achieve its objective of $100 Million in 2002. We also believe that such kind of acquisitions will also help the company increase its net income. We predict then, that AMS will acquire at least two more companies in the next five years, this will help the company expand it sells to reach $ 180 million in 2004 with an income of $ 13 million dollars. (See Appendix 4&5).

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